Luxury home prices in Spain's main residential markets.

The average price of properties offered for sale in Spain in 2022 was €1,921 per square meter, representing an annual increase of 5%, according to the annual report of Idealista, an online real estate marketplace in southern Europe. At the same time, prices for luxury apartments, i.e. those costing more than €1 million, ended the year at an average of €7,135 per square meter for luxury apartments and €4,436 per square meter for high-priced private homes.

Based on data from the last quarter of 2022, we take a look at the price evolution of these luxury homes in real estate markets in the most notable provinces (villas) and capital cities (apartments).

Balearic Islands, Malaga and Santa Cruz de Tenerife: the three provinces with the highest villa prices

Among private homes, three large markets stand out - Balearic Islands, Málaga and Alicante - due to their links with sun and beach tourism and the availability of primary or secondary residences close to the coast. The Balearic archipelago has the highest average price among the provinces analyzed, at 5,993 euros per square meter for luxury villas. Slightly behind is the province of Malaga with a price of 4,892 euros per square meter after an annual increase of 11.3% in the fourth quarter.

But there is also a notable market for private homes priced over €1 million in the provinces of Valencia (€2,513 per square meter), Granada (€3,298 per square meter), Cadiz (€3,457 per square meter) and Las Palmas (€3,639 per square meter).

Luxury apartments in major markets exceed €7,000 per square meter

Focusing on provincial capitals, apartments costing more than 1 million euros are the most sought-after on the real estate market. In Madrid (€7,200 per square meter) and Barcelona (€7,356 per square meter) prices exceed €7,000 per square meter, although the highest average prices can be found in San Sebastian (€7,975 per square meter) and Palma (€7,983 per square meter).

But while luxury house prices continue to rise in Madrid (3.8%) and Barcelona (0.3%), Palma (-0.3%) and San Sebastian (-2.5%) have seen a slight decrease in value on the market.

Properties costing more than 1 million euros can also be found in Málaga and Valencia, where prices reach 6,748 euros per square meter in Málaga and 4,703 euros per square meter in Valencia. Prices in Malaga have increased by 7% year-on-year, while in Valencia they have decreased by 7%.

The Balearic Islands have the most expensive apartments and Barcelona has outstanding luxury villas

Outside the provincial capitals, the most outstanding properties costing more than 1 million euros are in the Balearic Islands, which have the highest prices of the entire survey. In the Balearic archipelago, luxury apartments reached 8,147 euros per square meter, ahead of Barcelona (7,347 euros per square meter) or Málaga (7,345 euros per square meter), where the number of properties with these characteristics outside the capital has increased rapidly.

In addition to the province of Madrid (€7,038 per square meter), the luxury apartment market also includes the provinces of Alicante (€5,587 per square meter), Biscay (€5,430 per square meter), and Cádiz (€5,123 per square meter).

On the other hand, Barcelona has the most expensive luxury villas among provincial capitals, at 5,439 euros per square meter, followed by Palma (5,278 euros per square meter) and Madrid (4,124 euros per square meter).

However, villas priced at 1 million euros can also be found in Malaga (€2,981 per square meter), Alicante (€2,945 per square meter), Granada (€3,208 per square meter), and Seville (€3,250 per square meter).

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